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#PayMyStudentLoans Contest
#PayMyStudentLoans Contest

Say Buh-bye to High Interest Rates

When high interest rates are added to your already costly loan payments, your debt can go from attainable to unaffordable fast.

Some Student Loan Interest is Inevitable

Interest rates on loans are like your Aunt Milly at Thanksgiving – they’re typically unavoidable, especially if you have a federal loan. However, there’s no cookie-cutter rate for student loan borrowers. Your interest percentage will depend on the following criteria:

  • Federal vs. private loan
  • Undergraduate or graduate
  • Subsidized or unsubsidized
  • When you received the loan

Abolish Outrageous Interest Rates with an Accelerated Payment Plan

You can get a lower rate if you’re able to pay off your loan faster. *If* you’re able to pay more monthly.

Your monthly overall payment will be higher because of the shorter timeframe, but the change will save you in the long run. In short: the less time in the loan period, the lower the interest

Federal vs. Private Loan Rates

Federal interest rates are set by the government vary by loan type, whereas private loan interest rates are based on factors such as:

  • Credit history
  • Credit score
  • Borrowing power
  • Payment length

Federal loans can have double to triple the interest of a private lender, depending on your situation. Thanks, government. A potential solution for a high federal rate is to follow this three-step process:

  • 1. Borrow money from a private lender at lower interest
  • 2. Pay off your federal student loan faster
  • 3. Pay back the low-interest private loan

This plan is ideal if you can stick to the payment schedule. The downside is you will lose any income-based repayment options or forbearance offered by the federal government. Money Solver can review your current loan status and life circumstances to see if restructuring your loan for a lower interest rate is the right path for you. We’ll review what other options are available to you, so you can pay off student debt in the most efficient and affordable way possible.

You’ll be saying sayonara to those extra percentages – and we promise they won’t be missed.

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